creative economy 2009 report

8/2/2019 Creative Economy 2009 Report

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UUnnlleeaasshhiinnggOOuurrCCrreeaattiivveePPootteennttiiaallThe2009OtisReportontheCreativeEconomyoftheLosAngelesRegion,thethirdand latestannualstudycommissioned by Otis College of Art and Design from the Los Angeles County Economic Development

Corporation (LAEDC), affirms once again themonumental impact of the arts, design, and entertainment

industriesasacombinedeconomicforceinSouthernCalifornia.

NearlyonemillionemployeesworkdirectlyorindirectlyinthecreativeeconomyofLosAngelesandOrange

counties. Thatsoneineverysixjobsinourregion!Lastyear,evenpartlyinrecessionarytimes,LosAngeles

area firms in the creativeeconomy earned anestimated$121 billion in revenues,while those inOrange

County accounted for an estimated $18 billion. State and local governments received an estimated $5.1

billion in taxes tied to these activities.The creative sectorholds itsownwith the twobroadly recognized

regionaleconomicleaderstourism/hospitalityandinternationaltrade.

Our current economic challengesmandate longterm solutions. It is gratifying tohearon the federal and

statefrontscallsofattentiontotheeconomicimportanceofcreativeendeavors:

NewNationalEndowmentfortheArtsChairmanRoccoLandesmanrecentlydeclaredArtWorksasasummative

guiding

principle

of

his

work

at

the

agency.

He

will

spend

the

next

six

months

learning

andhighlightingthewaysthatartworksacrossAmerica.AdimensionofhisArtWorksconceptis

that artsjobs are realjobs that are part of the real economy. Art workers pay taxes, and art

contributes toeconomicgrowth,neighborhood revitalization,and the livabilityofAmerican towns

andcities.

Atthestate level,theNationalGovernorsAssociationCenterforBestPracticeshas issuedareportonArts& theEconomy:UsingArtsandCulture toStimulateStateEconomicDevelopment.This

report states thatgovernorscanadoptstrategies that supportand strengthen these industries.

These includeoffering incentives targetedat theartsand culture sectors aswellasdevelopment

initiatives, entrepreneurial training, marketing programs or publicprivate collaborations to

encouragegrowthandinvestinspecificcreativeclusters.

Locally,wehavethoughtful,excitingandambitiouseffortsthatcouldconvergetoshapeapowerfulaction

plan to fostercreativeendeavorsandensurenotonlyavitaleconomybutalsoabetterandmorevibrant

future.Considerthefollowing

TheLAEDC isdevelopingaconsensusstrategicplantobettertheenvironment forbusinesses.TheplanisinformedbyconversationstheLAEDCconductedwithbusiness,community,governmentand

educationleaders.Itencouragestheeducationanddevelopmentofhumancapital,businessfriendly

policiesandpractices,andqualityoflifetoattractandretainemployersandemployees.

TheCityofLosAngelesDepartmentofCulturalAffairs,directedbytheMayor,iscreatingaCulturalMasterPlan,aroadmapofstrategiesandtacticstostrengthenLosAngelesfuturethroughcreativity,

diversityandsynergy.

ArtsforLAhasdevelopedaPolicyPlatformthatarticulatescriticalstrategiesofsystemicchangefortheartsinLosAngelesCounty,withideasrangingfromartseducationtointegrationoftheartsinto

civiclifetoculturaltourismtofunding.

ArtsforAll:LosAngelesCountyRegionalBlueprintforArtsEducation,astrategicplantorestoreartseducationtothe1.7millionstudentsinLosAngelesCountys81schooldistricts,isalreadyinplace.


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There is thenascentandcompellingargument foranArts&BusinessCouncil for theGreaterLosAngeles Area, spearheaded by the Los Angeles Stage Alliance with funding from the California

CommunityFoundation.

Thetimehascomeforastrategicinvestmentinanddeploymentofcreativityasaproductivestimulusforour

region.Wecanseizethemomenttocombinecreativity,enterprise,technology,andpublicpolicytotackle

thecomplex issues related toour regionalgrowth,education,communitydevelopment,andsustainability.

Proudlyrecognizing

and

smartly

supporting

the

already

extraordinary

creative

resources

and

achievements

ofourregion,wecanbrandLosAngelesasacreativecapital.

AtOtisCollegeofArtandDesign,weprepareourstudentstobroadentheirroleasartistsanddesignersin

society.The lives,workandachievementsofouralumniillustratethepowerofart,designandcreativity in

oureconomy,cultureandcommunities.Tous,thedatainthe2009OtisReportontheCreativeEconomyoftheLosAngelesRegionaremorethanthefactsofcreativityseconomicimpact;itisthestoryofpossibilitiesmaderealbyacombinationofeducationandtalent.WeatOtis lookforwardtojoiningforceswithleaders

fromacrosssectorstotakepracticalstepsinunleashingthecreativepotentialoftheLosAngelesregion,and

inengaginginacreativeoffensiveforeconomicrecoveryandabetterfuture.

SamuelHoiPresidentOtisCollegeofArtandDesignNovember2009


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1

TheCreativeEconomyoftheLosAngelesRegion

WhatisthecreativeeconomyoftheLosAngelesregion? Asdefinedinthisreport,itisthemarketimpactofbusinessesandindividualsinvolvedinproducingcultural,artisticanddesigngoodsandservices. Itconsistsof

creative professionals and enterprises that parlay original ideas into creative goods and services. It also

includes

presenting

enterprises

that

bring

creative

products

to

the

marketplace

such

as

museums,

artgalleriesandperformingartsvenues. Athirdcomponentofthecreativeeconomy inLosAngelesrevolves

aroundactivitiesonedoesnot instinctivelyassociatewithcreativity,suchasmanufacturing;butapparel,

toyandfurnituremanufacturersdependupongooddesignfortheirsuccess.Thefinalpieceofthecreative

economy consistsof the support system that sustainscreativeactivity: artprograms in the schools,post

secondary arts institutes to develop talent, and community foundations along with other nonprofits to

providefinancialresourcesandincentivesthatallowthecreativeartstothrive.

WhenonethinksofLosAngeles,thesignatureindustriesthatmostfrequentlycometomindaretourismand

entertainment. Butwhatdrawsnearly25.9millionovernightvisitorstoSouthernCaliforniaeveryyear? How

didLosAngelesbecometheentertainmentcapitaloftheworld? Tourismandentertainmentderivetheir

competitiveadvantagefromtheL.A.brand,whichinturnowesitsdistinctivenesstothecreativeeconomy.People

often

get

confused

with

the

difference

between

culture

and

creativity.

Culture

is

defined

as

aset

of

values,conventions,orpracticessharedbyasociety. Creativity,ontheotherhand,isdefinedashavingthe

abilityandthepowertobringsomethingintobeing;itisimaginative. TheLosAngelesregionhasacreative

culture.

Althoughtourismandentertainmentarethemostobviousindustriesthatdrawtheircompetitiveadvantage

fromthecreativeeconomy,thecreativetalentbaseoftheregionspillsoverintoanumberofothersectors

andisamajordriverofeconomicgrowth. Forexample,thereisalinkagebetweenthecreativeeconomyand

anotheroneofSouthernCaliforniassignatureindustries:internationaltrade. Theimportcontainershandled

attheportsofLongBeachandLosAngelesareoftenfilledwithgoodsdesignedintheregionandproducedin

Asia(e.g.toys,clothingandfurniture). Thesortingandfurtherprocessingofthesegoodstakesplaceinlocal

warehouses and distribution centers, giving the creative economy a real estate impact. In Los Angeles

County,this

activity

has

resulted

in

the

tightest

industrial

real

estate

market

in

the

U.S.,

with

an

average

vacancy rateofjust2.2%at theendof2008. Thisneed forspacehasspilledover intoadjacentcounties,

especiallytheRiversideSanBernardinoarea.

The creative economy is undeniably important to the regions economic growth. Nearly one million

employees work directly or indirectly in the creative economy of Los Angeles and Orange Counties. Los

Angeles County based firms in the creative economy earned an estimated $121 billion in revenues during

2008, while Orange County accounted for an estimated $18 billion. California and local governments

receivedanestimated$5.1billionintaxestiedtotheseactivities.

Thecreativeeconomylinkswithmostotherindustryclustersintheregion. With342,300employeesinLos

AngelesCounty,thecreative industrieswouldranksecond,behindtourismandhospitality(458,000jobs in

2008),and

ahead

of

direct

international

trade

(281,000

jobs),

business

and

professional

services

(268,000

jobs, includingarchitectureandengineering),andentertainment (262,000jobs). Thecreative industries in

Orange County employed 44,500 workers, placing them ninth after tourism (198,000jobs), business and

professionalservices(120,000jobs,includingarchitectureandengineering),wholesaletrade/logistics(85,000

jobs), international trade (83,000 jobs), technology (78,000 jobs, including computer systems design),

materials &manufacturing (56,000jobs), health services (51,000jobs)and financialservices (45,500)jobs.

[Note: Although the Orange County creative economy was ranked sixth in LAEDCs previous report, their

current status as number nine does not reflect any change in their fortunes relative to other industries.

Instead,itisaresultofnewindustryclusterdefinitionsusedinthecurrentreport.]


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2

In 2007, the LAEDC, commissioned by Otis College of Art and Design, undertook the first comprehensive

analysisof thecreativeeconomys impact intheLosAngeles region. Thiscurrentstudy is the third in the

annual series. The creative economy examined in our reports encompasses the following ten areas:

fashion,toys,productand industrialdesign,architectureand interiordesign,digitalmedia,communication

arts,artgalleries,visualandperformingarts,furnitureandhomefurnishings, andentertainment.

The

2009

report

is

a

revision

and

an

update

to

the

research

carried

out

in

2007

and

2008.

Data

were

collectedonemployment,payrolls,andrevenues/shipmentsforallthecomponentsectorsinLosAngelesand

Orange counties from the Bureau of the Census, the Bureau of Labor Statistics and the California

Employment Development Department. Calculations were made of indirect employment1, the overall

economic impact, and the state and local taxes generated by these industries using specific sector inputs

fromtheRIMSIImodelcreatedbytheU.S.BureauofEconomicAnalysis. Thenumbersweretrulyimpressive.

Theresultsofthe2009reportarenotstrictlycomparablewiththeearlierstudiesforseveralreasons.

The 2005 figures cited in the 2007 report for employment and payrolls were partially based onsamples. The2008figuresinthisreportcomedirectlyfromtheCaliforniaEmploymentDevelopment

Department (EDD) andarebasedonunemployment taxpayments thatall firmswithemployeesare

requiredto

make

into

the

state

unemployment

insurance

fund.

These

data

are

the

best

available

for

thistypeofinformation.

Inadditiontousingemploymentdata fromtheEDD,wesurveyed localuniversitiesandcollegesandtradeandtechnicalschoolsin2008tolearnhowmanyfacultyandstaffwereinvolvedintheirfineand

performingartsprograms. Thesepeoplewerenotcountedinthe2007report. Weplantoupdatethis

surveynextyearforthe2010report.

The S/S/R (sales/shipments/receipts) estimates are based on data from the 2002 Economic Census.Figuresfor2007willnotbeavailableuntil2010. Forthe2009report,westartedwithestimatesfor

2003andupdatedthemto2008basedontheS/S/Rofthevariousindustriesatthenationallevel. This

procedure isequivalent toassumingLos AngelesandOrangeCountymaintained their2002 industry

sharesof

U.S.

S/S/R

in

2003

and

2008.

We

will

revise

these

estimates

in

the

2010

study

when

results

of

the2007EconomicCensusshouldbeavailable.

Completeinformationisnotpubliclyavailableonthesales,shipments,andreceiptsofallthecreativeindustriesintheregion. Thereasonforthisnondisclosureistheofficialpolicyofconfidentiality. The

governmentdoesnotwanttopublishanydatathatmightallowknowledgeablepersonstoestimate

thesalesofanysingle firm. Thispolicyaffectsthesmallercreative industries inOrangeCountyand

alsothelargemotionpictureindustryinbothcounties. AllofourstatementsaboutreceiptsinOrange

Countyshouldbeconsideredalowerbound. Theactualfiguresaresurelyhigherthanshown.

Many creative people are not employed in a traditional way, which complicates our analytical effort.

Becausetheyareselfemployed,theyarenotcapturedbytheusualgovernment informationsources. We

obtainedinformationfromadifferentsource2onthissignificantgroupofpeopleinthetwocountyarea(see

thesection

on

Nonemployer

Creative

Activity).

Thecreativeeconomy isamongthetopemployers intheLosAngelesregion. Importantly, thetalentthat

drivesthecreativeeconomy isalsoaresource forcompetitiveadvantagethatreachesacrossalmostevery

industryintheLosAngelesOrangeCountyregion. Inaddition,thecreativetalentpoolintheregionisnotas

vulnerabletogoingoffshore.Typically,thedevelopmentofadvancedtechnologiestoincreaseproductivity

1Directemployeesarethepeopleworking in the industry. Indirectemployeesworkforfirms inthesupplier industries,and

also for suppliers of consumer products who sell goods and services to both the direct workers and the employees of the

supplierfirms.2BureauoftheCensusNonemployerStatistics:http://www.census.gov/econ/nonemployer/index.html


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3

isseenastheroadtobetterjobs. In fact,advancedtechnologiescanbereplicatedacrosstheworldusing

cheaper labor. To thecontrary,originalartisticcreation, innovativedesign thinkingandother higherlevel

creativeworkcannotbeoutsourcedeasily. Creativityalsoservestobuildbrandawarenessandanattractive

environmenttoenticetalentedpeopletotheregion.

LosAngelesisuniquebecauseofitscombinationofplace,resourcesandopenattitudestowardsnewideas.

Here,ideas

are

constantly

given

form

and

brought

to

life

by

creative

people.

The

LAEDC

carried

out

this

researchbecause intheLosAngelesregion,creativity isseriousbusiness. OtisCollegeofArtandDesign,a

criticalcomponentofthecreativeeconomy,commissionedthisanalysistoputrealnumberstothebusiness

ofcreativity.


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4

L.A.FirstsSomeThingsBorninL.A.

ManyinterestingideashavecomeoutoftheLosAngelesareaovertheyears.

Hereisashortlistofsuchthings.

Audioanimatronicfigures Themodernbathingsuit Thefortunecookie SR71(highaltitudesupersonic

reconnaissanceplane)

TheF117,thefirst"stealth"fighter TheB2"stealth"bomber TheDouglasDC3,thefirst

commerciallyviablepassengerplane

The

Mars

Exploration

Rovers

Spirit

&

Opportunity

TheSpaceShuttle TheInternet Thedomainnameconventionforthe

internet

CrossinterleavedReedSolomoncoding(errorcorrectionmechanism

forCDs)

BugsBunny NewVWBeetle

The

Mazda

Miata

Talkingmovies "SnowWhite&theSevenDwarfs,"the

firstfeaturelengthcartoon

Barbie ThefirstcommerciallysuccessfulTV

stationnowKTLA,Channel5

Valetparking Toothwhiteningtoothpaste Conceptofmodernmakeup(Max

Factor'spancakemakeup)

Epogen/neuprogen

(bio

tech

blockbusterdrugs)

"Dancing"fountains CelebrityPR Theelectricguitar Themultichannelrecordingprocess Arcweldingofnaturalgaspipelines

Theskateboard(Venice) TheCobbsalad TheHulaHoop Thestraplessbra Shoulderpads(AdrianforJoanCrawford) Rhinestoneandspangledwesternwear

(Nudies)

Baremidriffs Neopreneassportswear(evolvedintosurf

wear)

Thesarong(designedbyEdithHeadforDorothyLamour)

The"stylist" "HotWheels" HeMan,MasteroftheUniverse BratzDolls AllDisneycharactersthathavebecome

dolls,figurines,etc.

PlasticFrisbee Eamesloungechairandottoman TheAeronchair TheMagic8Ball Themodernthemepark Disneyland SeesCandy(therewasaMarySee,who

movedtoLosAngelesfromCanada)

ThemodernTshirt(forUSCin1932) TheFrenchdipsandwich MySpace VonDutch JuicyCouture Pinkberry HotDogonaStickchain InNOut,firstdrivethroughrestaurant

(1948,BaldwinPark,CA)

Wigwag,thefirstrailroadgatecrossingSignal(AlbertHunt,1909)

THXSoundsSystem(formovietheaters)


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5

EEccoonnoommiiccEEnnvviirroonnmmeennttWhile this is a report about the creative economy of Los Angeles and Orange counties, the impact of the

national and global economic downturn during 2008 must be acknowledged. As the year opened, U.S.

housing markets were shrinking, home prices were falling, and the subprime mortgage industry was

collapsing. Initially, the problems appeared confined to those sectors. However, subprime mortgage

problems

turned

up

unexpectedly

in

many

other

nations

and

infected

their

financial

sectors

as

well.

A

full

fledgedfinancialcrisisbrokeoutinSeptemberOctober2008. Byyearend,muchoftheworldwasengulfed

inthedeepestrecessionsinceWorldWarII.

ThecreativeindustriesofLosAngelesandOrangecountieshavefeltthestingofthisrecession. Newhome

constructionhasplungedfrompeaksearlierinthedecade. Itlookslikepermitsissuedduring2009fornew

homesinLosAngelesCountywillbeatmost10,000units,downby 63%from2004(at26,935units)andthe

lowest level of activity since 1997. The situation is even worse in Orange County. Just 2,000 new home

permitsareexpected in2009,downby 83%fromthe2002peakof12,000units. Salesofexistinghomes

alsodroppedmarkedlyin2008. Withfewerhometransactionstakingplace,demandfornewfurnitureand

homefurnishingshasfallensharply,impactingsalesoftheL.A.OrangeCountyindustry.

The financial crisis was well publicized in the media, and generated strong fears among consumers and

businesses

in

Southern

California

and

across

the

nation.

Consumers

retrenched

and

reduced

discretionary

spending for the holidays, vacations and new vehicles. Businessfirms reacted by cutting expenses to theboneincludingadvertisingandlayingoffworkers. Bysummer2009,theL.A.Countyunemploymentrate

hadsurpassed12%,thehighestinatleast50years(andpossiblysinceWorldWarII). Joblessnessexceeded

9%inOrangeCounty;alsowellabovepreviousdeeprecessionaryperiods. Astheeconomyweakened,globaltradeflowsshrankmarkedly. TherearefewercontainersmovingthroughtheLosAngelesLongBeachportsand lessheavytrucktrafficonareafreeways. Thatalsomeans fewerdockworkersand lessneedfortruck

drivers.

Lastfallsfinancialcrisiscreatedproblemsinmanyoftheareascreativeindustries. Forexample,

Plunging stock prices hit the endowments of most nonprofit organizations quite hard. Drasticshrinkageofendowmentassetshas forcedanumberof institutionstomakeunpalatabledecisions

likereducing

hours

or

the

scale

of

operations

and

even

laying

off

staff.

The credit crunch means it is more difficult to borrow money or to find new equity investors formajor projects. In the entertainment industry, there are fewer people willing to back new film

productions or expensive television series. Elsewhere, less venture capital funding is available to

promisingnewbutuntriedsoftwarecompanies.

Someweakenedfinancialcompanieshavelosttheirownfinancialbackersandhavebeenforcedtoreduce or even stop lending to their traditional customer base. The spectacular collapse of the

areassubprimemortgageindustryisacaseinpoint. Thissortofproblemalsoimpactstheabilityof

small specialty retailers to purchase apparel and other merchandise on credit and of small

manufacturersofapparel,toys,giftware,andhomefurnishingstopurchasesupplies.

Asofthiswriting, itappearstheeconomy,whichhasbeen fallingsinceDecember2007,hitbottom in the

summerof

2009.

Housing,

consumer

spending

and

business

investment

all

are

at

low

levels

but

not

getting

appreciablyworse. Federalgovernmenteconomicpolicieshavehelped toarrestthedecline. TheFederal

Reserves policyfeaturing extremely low interest rates and ample availability of funds to the financial

sectoris restoring liquidity to financial markets, though it remains difficult for ordinary (less than prime)

peopleandbusinessestoborrowfromtheirbanks. Thefederalstimulusplanhasbeenslowtogetmoving

butisbeginningtoreportsomesuccesses,includingtheCashforClunkersprogramandmorefundingfor

infrastructure projects. However, in California and other states, the impact of the stimulus plan will be

lessenedbyshrinkingbudgetsandincreasesinstateandlocalincomeandsalestaxes.


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6

How has the economic downturn affected the 2008 data in this report? Because of the recession,

employmentdeclinedfrom2007to2008inmostoftheareascreativeindustries. Theonlyexceptionswere

entertainment, fine and performing arts, and communication arts. Still, the decline was relatively small,

about 2%overall,astheeconomywasteeteringontheedgeoftheabyssformuchoftheyear. Weexpect

employmentlossesintheareascreativeindustriestoincreasemarkedlyduring2009.

Inthepagesthatfollow,wedocumentthecreativeindustriesstrugglestowithstandtherecessionaryforces

of2008.

Some

were

more

successful,

some

less,

as

you

will

see.

However,

the

economy

returns

to

center

stageattheendofthisreport. There,wewilldescribewherewethinktheeconomyisheadedoverthenext

fourplusyearsandthenpresentahighlevelprojectionofemployment intheareascreative industries in

2013.


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7

EEmmppllooyymmeennttIn2008,about342,300peopleinLosAngelesCountyworkeddirectlyinthecreativeindustries. Whilemany

wouldexpecttheentertainmentindustrytodominate,itdidnot. Itaccountedforjust38.5%ofthecreative

jobs. Bysectorin2008,thelargestemploymentcountswerefoundin:entertainment:131,800jobs;fashion:

98,000jobs;furniture/homefurnishings:35,600jobs,andfineartsproviders:33,200jobs. (SeeTable21on

page

31

for

the

sector

details.)

Butdirectemploymentisonlythebeginning. Everyjobinthecreativeindustriessupportsorsustainsother

indirectjobs in the area. Direct employees are those who actually work in the creative industries of Los

AngelesandOrangecounties.Indirectemploymentiscreatedwhenfirmsintheseindustriesmakepurchases

from their suppliers and vendors. Additional indirect (also sometimes referred to as induced)jobs are

generatedwhenthedirectandindirectworkersspendtheirwagesonconsumergoodsandservices.

DirectandindirectemploymentinthecreativeindustriesbasedinLosAngelesCountytotalednearly860,000

jobs in2008. This factpoints toanotheraspectof thecreative industriestheyhaveahighmultiplier

impact. Thatis,eachdirectjobsupportsroughly1.5indirectjobs.

In Orange County, the creative industries were responsible for 44,500 directjobs in 2008. The largest

employmentsectorwas fashionwith12,500jobs, followedby furniturewith10,600jobs,andarchitecture

andinterior

design

with

6,200

jobs.

Direct and indirect employment in the creative industries located in Orange County totaled an estimated

92,500jobs. ThemultipliereffectinthiscountyisalittlesmallerthaninLosAngeles,at1.1indirectjobsfor

everydirectjob.

Some comparisons help put these employment numbers in perspective. There are more directjobs in the

creativeindustriesofLosAngelesandOrangeCountiesthan:

All2008nonfarmemploymentintheOxnardVenturametroarea(289,550jobs);and All2008nonfarmemploymentinthestateofNorthDakota(367,000jobs).

DirectandindirectemploymentinthecreativeindustriesofLosAngelesandOrangecountiesaccountedfor

morethan:

17.0%oftotalnonfarmemploymentinthetwocounties; All2008nonfarmemploymentinthestateofNewMexico(848,800jobs) All2008nonfarmemploymentintheSanJosemetroarea(921,200jobs)

Table1:EmploymentImpactofCreativeIndustries,2008

DirectJobs TotalJobs

Area 2008 2008

LosAngelesCounty 342,300 858,500OrangeCounty 44,500 92,500

Total 386,800 951,000

Sources:CaliforniaEmploymentDevelopmentDept.,ES202data;BLS;overallimpactcalculatedbyLAEDC.


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TTaaxxIImmppaaccttss

We also calculated some of the state and local income and sales tax revenues attributable directly and

indirectlytothecreativeindustries. Notethatactualtaxrevenuesarehigherthanshownhere,becausewe

excludedothertaxes,suchasthestateemploymenttax,corporatetaxesandlocalpropertytaxes.

InLosAngelesCounty,state/localpersonal incomeandsalestaxesgenerateddirectlyand indirectlybythe

creativeindustries

were

nearly

$4.7

billion

in

2008.

By

sector,

entertainment

set

the

pace

at

$2.5

billion,

followedbyfine&performingartsat$802millionandfashionat$661million.

State/local personal income and sales tax revenues associated directly and indirectly with the creative

industriesbasedinOrangeCountywereestimatedtobe$383millionin2008(basedonavailabledata). The

largest amount, $88 million, was generated by fashion, followed by furniture & home furnishings at $75

million.

Table2summarizestheeconomic impactofourcreative industries in2008. Thecreative industriesofLos

AngelesandOrangeCountygenerated$310.8billionindirectandindirectoutput. Theyemployednearlyone

millionworkers. Thedirectandindirectworkerspaidnearly$5.1billioninpersonalincomeandsalestaxesto

theCaliforniastategovernment.

Table2:EconomicImpactofCreativeIndustries,2008

DirectImpact OverallEconomicImpact

Output Direct& Taxes1

Area Jobs

Nonemployer

Estab. ($millions) IndirectJobs ($millions)

LosAngelesCounty 342,300 167,600 $276,600 858,500 $4,700

OrangeCounty 44,500 18,600 34,200 92,500 383

Total 386,800 186,200 $310,800 951,000 $5,083

Notes:

1)Statepersonalincometaxandsalestaxgeneratedbyearningsandspendingofthedirectandindirectworkers.

Detailsmight

not

add

to

totals

due

to

rounding.

Sources:CaliforniaEmploymentDevelopmentDepartment,ES202data;BureauoftheCensus;revenuedataextrapolatedfrom

2002EconomicCensus;overallimpactcalculatedbyLAEDC.


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10

Job Trends in the Creative Industries

Los Angeles County, 2003 vs. 2008

0 50 100 150 200 250 300 350

2

0

0

8

2

0

0

3

Entertainment

Furniture,Home

Furnishings

Fine&PerformingArts

ArtGalleries

CommunicationsArts

DigitalMedia

Architecture/Interior

DesignProduct/Industrial

DesignToys

Fashion

Source:Cal.EDD,ES202data

346.8

342.3

InThousands

Job Trends in the Creative IndustriesOrange County, 2003 vs. 2008

0.00 10.00 20.00 30.00 40 .00 50 .00

2

0

0

8

2

0

0

3

Entertainment

Furniture,HomeFurnishings

Fine&PerformingArts

ArtGalleries

CommunicationsArts

DigitalMedia

Architectur/InteriorDesign

Product/IndustrialDesign

Toys

Fashion

Source:Cal.EDD,ES202data

49.3

44.5

InThousands

EEmmppllooyymmeennttTTrreennddss

Direct employment in the creative economy of Los Angeles and Orange Counties has moved more or less

sidewayssince2003. Somecomponentsectors,suchasfashionandfurniture,havebeensheddingjobsfor

quitesometimeduetooffshoringofproductionactivities. Meanwhile,othersectorshavegrownincluding

architecture&interiordesign,product/industrialdesign,digitalmediaandthefine&performingarts.

By far the largestcomponentofthecreativeeconomy

in Los Angeles County is the entertainment industry;

particularlymotionpictureandvideoproduction. The

entertainmentindustryhasenjoyedsubstantialgrowth

in recent years. Overall, employment has swelled by

nearly+10.0%since2003. Thisincreasewasdrivenby

motion picture and video production which added

+11,200workers(+11.3%)andcurrentlycomprises84%

of total employment in the entertainment industry in

LosAngelesCounty.

While

several

sectors

within

the

creative

economyexperienced job losses, the fashion and furniture &

home furnishings industries have suffered the most

significantdeclinesoverthelastfiveyears. Totalemploymentinfashionfellby 11.0%withtheheaviestjob

losses concentrated in apparel manufacturing (12,700jobs) and textile mills manufacturing (1,200jobs).

Thenewswasnotallbad,however. Somefashionsectorsaddedjobs: apparelwholesaling(+2,200jobs)and

specializeddesignservices(+800jobs). Unfortunately,therewerenosuchmitigatingoffsetsforthefurniture

& home furnishings industry. During the last five years, 12,900jobshave disappeared in textile products,

furnitureandlightfixturemanufacturing,aswellasfurniturewholesalinganindustrywidecontractionof

26.7%.

Moving south to Orange County, most sectors of the

creative

economy

saw

declines

from

2003

to

2008.The overall decline of 9.8% was primarily due tojob

losses in the furniture & home furnishings and

communications arts industries. Furniture & home

furnishings employment fell by 14.8%, with textile

mills leading the retreat (24.2%) closely followed by

furniture manufacturing (23.5%) and furniture

wholesaling(13.7%). Theonlybrightspotwaslighting

fixtures,whichadded+700jobs.

The largest contributor to job losses in Orange

Countys creative economy was communication arts.

Thissector

includes

graphic

designers

and

advertising

agencies. Since2003,OrangeCountyadvertisingagenciesshed 2,900workers(52.8%),while 300jobs in

graphic design were lost (19.8%). Among the bright spots in OrangeCounty were architecture & interior

design(+6.2%)anddigitalmedia(+13.1%).

Takingasnapshotviewofthepasteightyears,inLosAngelesCountytherecentemploymenthighpointfor

the creative economy was 2002, when there were 358,500jobs, as compared with 342,300 in 2008. In

OrangeCounty,thehighwasreachedin2001,whentheemploymentcountwas59,200jobs. Employmentin

thecreativeindustriesfellto49,300jobsin2003and44,500in2008.


15/39

11

NNoonneemmppllooyyeerrCCrreeaattiivveeAAccttiivviittyy

Many people in creative activities are selfemployed and work as nonemployer firms, or firms with

revenues but no paid direct employees. Thus, they do not show up in the traditional federal and state

government employmentdata,suchas the ES202 reports used todevelop thejobnumbers in this report.

ThelatestnonemployerdatacomefromtheIRSandcovertaxyear2007. Notethatsomepeoplemayhavea

taxID

number

as

anonemployer

firm

while

also

working

for

atraditional

company.

The

latter

job

will

be

covered in the traditional statistics. To prevent doublecounting, we treat this data separately from the

ES202 based data. (Note also that nonemployer data are not available for digital media andseveral other

industries.)

In2007,therewere113,604creativenonemployerfirmsinLosAngelesCountyand18,645inOrangeCounty.

Since2000,therehasbeensteadygrowthinbothcounties. Byfarthelargestnumberofthesefirmsisinthe

sector called independent artists, writers and performers, which includes many people working in the

entertainmentindustry,particularlyinmotionpictureandvideoproductionaswellasonstage.

Revenues/receiptsofcreativenonemployerfirmsinLosAngelesCountywereover$5.5billionin2007,with

39.7%generatedbyindependentartists,writersandperformers. InOrangeCounty,revenues/receiptswere

almost$845

million,

with

the

largest

share

(38.0%)

coming

from

communication

arts.

Whileoverallgrowthinnonemployerestablishmentshasbeensteady,thereisagreatdealofvariationinthe

relativeimportanceofthesesinglepersonentitiesamongthevarioussectorsofthecreativeeconomy. For

example,inthefineandperformingarts,therearenearlytwoselfemployedpersonsinLosAngelesforevery

traditional (i.e. salaried) employee. In Orange County, the ratio is 2.3 to one. In the communication arts

(advertisingandspecializeddesignservices),thereisalmostonetooneparityinLosAngeles,whileinOrange

County,thereare1.3singlepersonfirmsforeachsalariedworker. Incomparison,personsworkingintheLos

Angeles furniture industry are more likely to be employedby a regular firm. Nonemployer establishments

comprisejustoneoutofevery23 individualsworking inthefurniture industry. TheOrangeCountyratio is

similar.

Growthrates

of

creative

nonemployer

firms

versus

employee

firms

differed

markedly

by

industry

sector.

In

LosAngelesCounty,nonemployerfirmgrowthoutstrippedregularemploymentgrowthfrom2002to2007in

six of the ten major segments included in our analysis: art galleries, communication arts, entertainment,

fashion,fine&performingarts,andfurnitureandhomefurnishings.Thedrivingforcebehindthistrendisa

growingtendencyforfirmstoconcentrateresourcesontheircorecompetencies(i.e.,whattheydobest)and

to outsource other tasks such as design services to independent contractors. Another factor at work,

especially during a recession, is for laidoff workers to start their own businesses if they cannot find

employmentelsewhere.

Inthecaseofartgalleries,fashionandfurniture,traditionalemploymentactuallyshrankastheranksofthe

selfemployedgrewoverthisperiod. Onlythetoyindustrydemonstratedgrowthintheoppositedirection.

[Wesuspectthismaybeduetoindependentdesignersinmanufacturingindustriesbeingmisclassifiedinthe

specializeddesign

services

category.]

In

Orange

County,

this

trend

was

much

less

pronounced,

with

only

nonemployer firms in entertainment and fine & performing arts growing faster than traditional employer

establishments. Heretoothenumberofselfemployedpersons inthetoy industriesdiminishedrelativeto

regularemployment.

We did not try to calculate any indirect impacts from nonemployer firms, as the RIMS II model was not

developedtohandlenonemployeractivity. (PleaseseeTables3through6fordetailednonemployerdata).


16/39

12

Table3: RatioBetweenEmployees&NonemployersbySector(2007)

Percentageofnonemployerfirms(selfemployedindividuals)vs.salariedemployees

N onemployers Employees Ratio Nonemployers Employees Ratio

Architecture&InteriorDesign 3,671 12,800 28.7% 1,247 7,300 17.1%

ArtGalleries 692 1,100 62.9% 225 400 56.3%

CommunicationArts 17,884 17,700 101.0% 5,764 4,300 134.0%

DigitalMedia n/a 6,800 n/a 3,300

Entertainment 17,640 131,200 13.4% 1,267 1,800 70.4%

Fashion 6,653 99,300 6.7% 1,355 14,000 9.7%

Fine&PerformingArts 64,962 32,800 198.1% 8,170 3,500 233.4%

Furniture&HomeFurnishings 1,712 39,600 4.3% 495 10,700 4.6%

Product&Industrial Design n/a 800 n/a 500

Toys 390 6,300 6.2% 122 600 20.3%

Source: CaliforniaEDDES202Data;BureauoftheCensusNonemployerStatistics

LosAngelesCounty OrangeCountyIndustrySector

Table4: ComparativeGrowthRates: Employeesvs.Nonemployers20022007

Employment

Growth

20022007

Nonemployer

Growth

20022007

Employment

Growth

20022007

Nonemployer

Growth

20022007

Architecture&InteriorDesign 34.7% 3.2% 30.4% 1.9%

ArtGalleries 8.3% 2.8% 20.0% 3.2%

CommunicationArts 16.4% 22.3% 38.6% 20.0%

DigitalMedia 19.3% n/a 17.5% n/a

Entertainment 5.8% 23.7% 7.0% 20%

Fashion 16.0% 4.9% 3.4% 0.6%

Fine&PerformingArts 21.1% 34.9% 7.9% 28.6%

Furniture&HomeFurnishings 24.5% 1.1% 21.3% 7.1%

Product&Industrial Design 60.0% n/a 150.0% n/a

Toys 8.6%16.8% 0.0%

17.6%

Source: CaliforniaEDDES202Data;BureauoftheCensusNonemployerStatistics

IndustrySector

LosAngelesCounty OrangeCounty

Note: DataarenotavailableforDigitalMediaandProduct&IndustrialDesign



17/39

Table5:NonemployerFirmStatisticsfortheCreativeIndustries,20032007

NumberofFirms

Los Angeles County

Category NAICS Industry Description 2003 2004 2005 2006 2007 2003 2004

313 Textile Mills Manufacturing 87 79 79 91 103 19 21

315 Apparel Manufacturing 2,408 2,381 2,277 2,115 2,167 527 504

3162 Footwear Manufacturing n/a n/a 63 59 56 n/a n/a

31699 Other Leather & Allied Product Manufacturing 99 99 107 106 123 25 25

4243 Apparel Wholesalers 2,568 2,683 2,662 2,645 2,645 591 595

Fashion

42394 Jewelry Merchant Wholesalers 1,554 1,551 1,615 1,611 1,559 273 257

Toys 42392 Toy and Hobby Goods Wholesalers 489 487 444 429 390 160 157

54131 Architectural Services 2,915 3,028 2,944 2,898 2,724 960 934Architecture &Interior Design 54132 Landscape Architectural Services 947 995 1,000 1,006 947 349 358

Art Galleries 45392 Art Dealers 646 646 651 657 692 217 225

7111 Performing Arts Companies 2,205 2,376 2,516 2,787 3,331 301 336

71141 Agents & Managers of Artists, etc. 3,865 3,963 4,087 4,089 3,940 434 453

71151 Independent Artists, Writers, & Performers 47,132 49,904 53,411 54,712 57,400 5,940 6,320

Fine &PerformingArts Providers

7121 Museums 237 293 258 285 291 17 21

314 Textile Product Mills 117 131 116 114 153 35 26

337 Furniture & Related Product Manufacturing 737 751 730 725 766 181 178Furniture &HomeFurnishings 4232 Furniture/Home Furnishing Wholesalers 840 871 867 805 793 332 324

5121 Motion Picture/TV Production 11,867 12,569 12,793 13,795 14,109 694 742

5122 Sound Recording Industries 2,176 2,305 2,329 2,510 2,512 206 223Entertainment

515 Broadcasting (except Internet) 914 959 987 1,070 1,019 149 183

5414 Specialized Design Services 9,490 10,091 9,937 10,695 11,598 2,955 3,084CommunicationArts

5418 Advertising Agencies 5,853 6,006 5,487 6,001 6,286 2,115 2,173

Total Nonemployer Firms 97,146 102,168 105,360 109,205 113,604 16,480 17,139

Source:USDept.ofCommerce,BureauoftheCensus,NonemployerStatistics.



18/39

Table6:NonemployerFirmStatisticsfortheCreativeIndustries,20032007

ValueofShipment,Sales,orReceipts

($millions)

Source:USDept.ofCommerce,BureauoftheCensus,NonemployerStatistics.

LosAngelesCounty

Category NAICS IndustryDescription 2003 2004 2005 2006 2007

313 TextileMillsManufacturing $2.6 $4.1 $4.2 $2.4 $2.6 $

315 ApparelManufacturing 160.1 151.5 134.6 122.8 131.6 3

3162 FootwearManufacturing n/a n/a 3.3 2.7 2.8

31699 OtherLeather&AlliedProduct 5.3 7.3 6.1 6.9 7.4

4243 ApparelWholesalers 322.7 337.2 359.6 356.2 316.5 5

Fashion

42394 JewelryMerchantWholesalers 242.9 250.8 261.0 251.8 234.6 1

Toys 42392 ToyandHobbyGoodsWholesalers 52.1 50.7 44.6 41.8 36.8 1

54131 ArchitecturalServices 146.5 157.6 171.6 179.3 178.9 5Architecture&

InteriorDesign 54132 LandscapeArchitecturalServices 33.0 41.2 45.2 41.3 44.0 1

ArtGalleries 45392 ArtDealers 44.8 47.9 60.0 62.5 67.3 1

7111

PerformingArts

Companies

118.8

136.5

142.7

160.9

181.1

71141 Agents&ManagersofArtists,etc. 192.3 205.3 209.6 225.7 236.0 1

71151 IndependentArtists,Writers,& 1,589.0 1,735.0 1,939.8 1,959.5 2,185.4 12

Fine&Performing

ArtsProviders7121 Museums 4.7 4.9 6.7 7.3 6.5

314 TextileProductMills 6.8 4.1 7.9 7.4 10.0

337 Furniture&RelatedProduct 45.2 55.1 55.8 53.7 55.1 1

Furniture&

Home

Furnishings 4232 Furniture/HomeFurnishingWholesalers 71.1 80.8 81.6 70.4 75.5 3

5121 MotionPicture/TVProduction 586.2 617.0 646.2 668.4 685.4 2

Entertainment 5122 SoundRecordingIndustries 104.8 110.7 104.9 109.7 112.1

515 Broadcasting(exceptInternet) 50.3 51.4 56.4 49.2 49.9

5414 SpecializedDesignServices 367.9 409.2 428.6 464.2 507.8 14Communication

Arts 5418 AdvertisingAgencies 310.7 354.8 359.5 370.6 371.9 14

TotalValue:

$4,457.8

$4,813.2

$5,129.9

$5,214.8

$5,499.3

$74



19/39

15

IInndduussttrryySSnnaappsshhoottss

Fashion

Thissector includesapparelandtextilemanufacturing, thewholesaleapparelandjewelrymarts,jewelry

manufacturing,

cosmetics,

footwear

and

handbag

production.

Apparel

can

be

designed

in

Southern

California, produced in Asia, and shipped back to the U.S. through the two local ports. Often, further

processingtakesplaceintheregion,suchasqualityinspections,andaffixinglabelsandhangtags. Thereis

alsoasubstantial localbusiness inquickturnapparelproduction (Ineed ityesterday!). Attendanceat

thevariousapparelmarketsheldinLosAngelesisgrowing,especiallyamonginternationalbuyers.

In2008,therewere6,872 fashionbusinesses inLosAngelesCounty,with98,000directemployees. Direct

sales were $36.3 billion, including $16.4 billion from apparel wholesaling and $5.8 billion from apparel

manufacturing. Thetotal (directand indirect)economic impactwas large:231,700directand indirectjobs

and total output of $70.6 billion. State/local personal income and sales taxes generated directly and

indirectlybythissectortotaled$661million.

ThefashionindustryinOrangeCountyissmallerbutrunsthegamutfromtherefineddesignsofSt.JohnKnits

tohigh

profile

action

sportswear.

In

2008,

there

were

743

fashion

related

businesses

with

12,500

direct

jobs

creating 26,500 total (direct and indirect)jobs in the region. State/local personal income and sales taxes

generateddirectlyandindirectlybythissectorwere$88million.

Table7:EconomicImpactoftheFashionIndustry,2008

2013 Total(Direct+Indirect)Impact Payroll Jobs Output Taxes

1

Area Estab. Jobs ($billions)Nonemp.

Estab. Forecast ($billions) Jobs ($millions)LosAngeles 6,872 98,000 $3.6 6,653 88,600 $70.6 231,700 $661.4Orange 743 12,500 0.6 1,355 11,100 10.6 26,500 88.0

Total

7,615

110,500

$4.2

8,008

99,700

$81.2

258,200

$749.4

Notes:


Sources:CaliforniaEDD,ES202data,BureauoftheCensus;indirectimpactsestimatedbyLAEDC.


20/39

16

TTooyyss

Whilethejobnumbersmaylookmodest,SouthernCaliforniaisamajorforceinthetoyindustry,withsuch

marqueenamesasBarbie,HotWheels,andmorerecently,Bratz. ThebusinessnamesincludeMattel,MGA

Entertainment,Jakks

Pacific,

Funrise,

Imperial

Toys,

and

Mega

Toys.

Much

of

the

actual

manufacturing

takes

placeinAsia,butthedesignandmarketingtakeplaceintheLosAngelesregionbecauseofthelocalcreative

talentpoolandsupportivetrainingprograms.

InLosAngelesCounty,therewere6,000directjobsintoymanufacturingandwholesalingduring2008,while

sales totaled $5.0 billion. The total (direct and indirect) economic impact of the toy industry was 16,300

direct& indirectjobsandeconomic outputof$9.5billion.Taxesassociatedwith this industrywerenearly

$101million.

ToyshadamuchlowerprofileinOrangeCounty,wheretherewere700directjobsin2008,generating1,600

jobs intotal. Statepersonal incomeandsalestaxesgenerateddirectlyand indirectlybythissectortotaled

nearly$7million.

Table8:EconomicImpactoftheToyIndustry,20082013 Total(Direct+Indirect)Impact

Payroll Jobs TaxesArea Estab. Jobs ($billions)

Nonemp.

Estab. ForecastOutput

$billions Jobs ($millions)LosAn elesCount 258 6,000 $0.61 390 5,800 $9.5 16,300 $100.8OrangeCounty 47 700 0.05 122 700 1.3 1,600 6.8

Total 305 6,700 $0.66 512 6,500 $10.8 17,900 $107.6



21/39

17

DDiiggiittaallMMeeddiiaa

Dataforemploymentinthedigitalmediaindustryareincomplete. Alargenumberofprogrammersare

independentcontractorswhoarenotcapturedbythetraditionaldatasources. Manyalsoworkforfirmsin

otherindustries. Withthegrowthofdigitalmediaintheentertainmentindustry,forexample,moreand

moreof

these

individuals

are

moving

onto

the

payrolls

of

the

film

studios.

Weselectedsoftwarepublishersastheindustrythatbestfitsthisactivityandidentified53majorvideogame

producersintheLosAngelesandOrangecounties. InLosAngelesCounty,therewere5,400personsdirectly

engaged in software publishing during 2008, and sector revenues were $3.3 billion. The total economic

impactprovedtobeimpressive:16,000totaljobsandtotaleconomicoutputof$6.3billion.

OrangeCountyhad4,200peopleworking in thissector in2008,and salesof$2.5billion. Again, the total

economicimpactwaslarge;9,100totaljobsandeconomicoutputof$5.0billion.

Kathleen Milnes, CEO of the Entertainment Economy Institute, researched occupations requiring digital

mediaskills. Selectingmultimediaartistsandanimators,shefound10,510peopleemployedinCaliforniain

a variety of industries. The top five were motion picture & video, advertising, computer systems design,

software

publishers

and

specialized

design

services.

All

but

computer

systems

design

are

included

in

our

creativeeconomyemploymenttotals. Ofequalinterest(andfrustrationtothedatawatchers),nearly70%of

digitalartists(nationwide)areselfemployed.(SeetheendofthisreportforKathleenMilnes,OpportunitiesintheArtsAreLargerThanTheyAppear: AnAnalysisofMultimediaArtistandAnimatorEmploymentAcrossCaliforniasIndustries.)

Table9:EconomicImpactoftheDigitalMediaIndustry,20082013 Total(Direct+Indirect)Impact

Payroll Jobs Output TaxesArea Estab. Jobs ($billions) Forecast ($billions) Jobs ($millions)

LosAn elesCount 176 5,400 $0.5 5,900 $6.3 16,000 $71.7

Orange

County

112

4,200

0.6 4,600 5.0 9,100

66.7Total 288 9,600 $1.1 10,500 $11.3 25,100 $138.4



22/39

18

MajorVideoGameFirmswithOperationsinSouthernCaliforniaVideogamefirmsaredifficulttofind,butweputtogetheralistofsuchfirmsinLosAngelesandOrangecounties,usingsources

deemedreliable. Ifthereareanyomissions,weapologize(callandtellus). Oneoftheproblems isthat thesefirmscanbe

classified undersoftwarepublishingorunder toymanufacturing (there isnogovernment industry code NAICS forvideo

gamepublishers).Therearealso"serious"videogamepublishersinthearea. OneisAlelo,whichpublishesagamethathelps

U.S.soldierslearneverydayconversationalArabic.

LosAngelesareagamepublisherswithlocaldevelopmentbranches:

ActivisionBlizzard,Irvine&SantaMonica HeavyIronStudios,CulverCity InfinityWard,Encino Luxoflux,SantaMonica Neversoft,WoodlandHills NovaLogic,Calabasas

RiotGames,LosAngeles TheWaltDisneyCo.,Burbank

eDisneyStudios,NorthHollywood THQ,Calabasas Treyarch,SantaMonica

SouthernCaliforniaareaindependentlyownedgamedevelopers:

EmergentGameTechnologies,Calabasas GenuineGames,WoodlandHills HighImpactGames,NorthHollywood InsomniacGames,Burbank

Jailed

Games

Inc.,

Santa

Monica

LeftField,WestlakeVillage LegacyInteractive,Hollywood LiquidEntertainment,Pasadena NakedSkyEntertainment,LosAngeles PandemicStudios,Westwood(ownedin

partnershipwithBioWare,Canada)

RealtimeAssociates,ElSegundo SevenStudios,LosAngeles

SparkUnlimited,ShermanOaks TrilogyStudios,SantaMonica WayForward,SantaClarita Coresoft,LakeForest

inXile

Entertainment,

Newport

Beach

ObsidianEntertainment,SantaAna PointofView,Tustin QuicksilverSoftware,Irvine ReadyatDawnStudios,Tustin Red5Studios,AlisoViejo SupervillainStudios,SantaAna

Companiesheadquarteredoutsidetheregion,butwithlocaldevelopmentbranches:

AbandonEntertainment,NewYork LuckyChickenGames,Malibu

Climax

Group,

UK

Climax,SantaMonica ElectronicArts,RedwoodShores,CA

EALosAngeles,PlayaVista EAMobile(formerlyJAMDATMobile),Playa

Vista

MidwayGames,Illinois MidwayStudios,LosAngeles

Sony,Japan NaughtyDog,SantaMonica SonyComputerEntertainmentAmerica,

SantaMonica

Turbine,Massachusetts TurbineLA,SantaMonica

NCsoft,SouthKorea NCsoftLosAngeles,SantaMonica NCsoftOrangeCounty,AlisoViejo

TheCollective,NewportBeach ShinyEntertainment Foundation9

MumboJumbo,Texas ZonoInc.,CostaMesa

ValveCorporation,Washington TurtleRockStudios,Irvine

SouthernCalifornia

game

publishers

with

no

local

development

offices:

AcclaimGames,BeverlyHills BuenaVistaGames,Glendale(ownedbyDisney) ConspiracyEntertainment,SantaMonica FoxInteractive,CenturyCity(ownedbyNewsCorp.) KonamiDigitalEntertainment,LosAngeles

(ownedbyKonamiJapan)

TecmoInc.,Torrance(ownedbyTecmoJapan)

WarnerBros.InteractiveEntertainment,Burbank(TimeWarner,NewYork)

AtlusUSA,Irvine(ownedbyAtlus,Japan) CraveGames,NewportBeach(ownedby

Handleman,Illinois)

SquareEnixNorthAmerica,ElSegundo(ownedbySquareEnix,Japan)


23/39


24/39

20

AArrcchhiitteeccttuurreeaannddIInntteerriioorrDDeessiiggnnThissectorincludesfirmsthatspecializeinarchitecturalservices,landscapearchitectureandinteriordesign.

InLosAngelesCounty,theindustryreported12,600directjobsin2008. Revenueswereestimatedtobe$2.7

billion

(with

$1.9

billion

from

architecture).

Los

Angeles

is

the

home

of

several

highprofile

architects,

including Frank Gehry, Thom Mayne, Fred Fisher, Steven Ehrlich, and longtime local stalwart A.C. Martin

Partners (designers of the iconic Los Angeles City Hall and many other prominent buildings). This sector

generatedatotaleconomicimpactof24,800jobsand$5.4billionineconomicoutput.

Orange County has a lot of activity in this sector as well, with 6,200 directjobs in 2008 and estimated

revenuesof$1.9billion. Thetotaleconomic impact included12,100directand indirectjobsandoutputof

$3.8billion.

Table11:EconomicImpactoftheArchitectureandInteriorDesignIndustry,2008

2013 Total(Direct+Indirect)Impact

Payroll Nonemp. Jobs Output

TaxesArea Estab. Jobs ($billions Estab. Forecast ($billions Jobs ($millions)LosAngelesCounty 1,727 12,600 $1.0 3,671 13,400 $5.4 24,800 $123.7OrangeCounty 796 6,200 0.5 1,247 6,600 3.8 12,100 59.4

Total 2,523 18,800 $1.5 4,918 20,000 $9.2 36,900 $183.1


CCoommmmuunniiccaattiioonnAArrttss

Thissector

includes

firms

specializing

in

graphic

design

services,

advertising

agencies,

package

design,

and

displayanddirectmailadvertising. During2008,therewere18,000peopleworkingdirectlyinthissectorin

Los Angeles County (with 12,600 employed in advertising agencies), and revenues were more than $2.8

billion. Thetotaleconomicimpactwassizable:38,800directandindirectjobsandoutputof$5.9billion.

In Orange County, there were 3,900 people working directly in these activities, with business revenues of

$6.0million. Thetotaleconomicimpactincluded7,900jobsandoutputof$1.1billion.

Table12:EconomicImpactoftheCommunicationArtsIndustry,2008

2013 Total(Direct+Indirect)Impact Payroll Nonemp. Jobs Output Taxes

Area

Estab.

Jobs

($billions) Estab. Forecast ($billions)

Jobs

($millions)LosAn eles 1,644 18,000 $1.6 17,884 18,000 $5.9 38,800 $225.8OrangeCounty 579 3,900 0.3 5,764 4,000 1.1 7,900 34.7

Total 2,223 21,900 $1.9 23,648 22,000 $7.0 46,700 $260.5



25/39

21

AArrttGGaalllleerriieess

Therewere255artgalleries inLosAngelesCountyduring2008. Directsalesvolumewas estimated tobe

$215million. Thetotaleconomicimpactwas1,600jobsandoutputof$444.5million. Inaddition,wefound

692art

dealers

in

the

nonemployer

data

for

L.A.

County,

with

sales

of

$67.3

million

during

2007

(latest

data

available). Someofthesecouldbeoperatingoutoftheirhomes.

In Orange County, there were 71 galleries in 2008 with estimated direct sales of $49.3 million. The total

impactofthissegmentofthecreativeindustrieswas510totaljobsandoutputof$97.3million. Also,there

were225nonemployerartdealersin2007,whoreportedsalesof$17.3million.

Table13:EconomicImpactofArtGalleries,20082013 Total(Direct+Indirect)Impact

Payroll Nonemp. Jobs Output TaxesArea Estab. Jobs ($millions) Estab. Forecast ($millions) Jobs ($millions)

LosAn elesCount 255 1,000 $53.3 692 1,100 $444.5 1,600 $7.8OrangeCounty 71 300 9.4 225 400 97.3 510 1.3

Total 326 1,300 $62.7 917 1,500 $541.8 2,110 $9.1


FFiinneeaannddPPeerrffoorrmmiinnggAArrttss

Thisgroupingincludesfineandperformingartschools,theateranddancecompanies,musicalgroups,other

performingartscompanies,museums,aswellas independentartists,writers,entertainersandtheiragents

and managers. Many of these firms are nonprofit organizations. In addition to the official employment

numbers,weconductedasurveyofuniversities,colleges,andtechnicalandtradeschoolsprovidingdegree

programsinthefineandperformingarts.Weincludedtheminthe2008employmentfiguresinTable14.

Therewere

33,200

direct

jobs

in

this

sector

in

Los

Angeles

County

during

2008

(3,700

jobs

from

the

LAEDC

survey), and revenues totaled $11.0 billion (with $6.6 billion from the independent artists). The total

economicimpactincluded56,500jobsandoutputof$26.7billion. Thestatetaxrevenuesgenerateddirectly

andindirectlybythissectorcameto$802.2millionin2008.

In Orange County, the fine and performing arts industry had 3,700 directjobs (200jobs from the LAEDC

survey)with total revenueof $527million. The totaleconomic impact of this industrywas6,300jobs and

outputof$1.2billion. Thetaxrevenuesgenerateddirectlyandindirectlybythissectorcameto$20.1million

in2008.

Table14:EconomicImpactoftheFineandPerformingArtsIndustry,20082013 Total(Direct+Indirect)Impact

Payroll

Nonemp.

Jobs

Output

Taxes

Area Estab. Jobs* ($billions) Estab. Forecast ($billions) Jobs ($millions)

LosAngeles 8,295 33,200 $5.2 64,962 35,300 $26.7 56,500 $802.2

Orange 405 3,700 0.1 8,170 3,900 1.2 6,300 20.1

Total 8,700 36,900 $5.3 73,132 39,200 27.9 62,800 $822.3

*IncludesLAEDCssurveyofdegreeprogramsofferedbyFineandPerformingArtsdepartments/schoolsinlocal

universities/collegesandtrade/technicalschools.



26/39

22

FFuurrnniittuurreeaannddHHoommeeFFuurrnniisshhiinnggss

This grouping includes firms that manufacture, warehouse, import and export furniture, the furniture

marts, textile product mills (e.g., sheets, toweling, and curtains) and china and pottery producers. Like

apparel,these

items

are

frequently

designed

in

the

region,

produced

in

Asia

and

shipped

back

through

the

localports. Thefurnituremartshaveannualshowsthatattractbuyersfromaroundthenation.

In Los Angeles County, this segment accounted for 35,600 directjobs during 2008 and estimated sales of

more than $12.2 billion. Furniture wholesaling (which includes import/exportand warehousing as well as

wholesale distribution) accounted for $7.1 billion and furniture manufacturing for $3.3 billion. The total

economic impactwas over77,800directand indirectjobsandoutputof$23.7billion. Stateand local tax

revenuesgenerateddirectlyandindirectlybythesectorwere$230.6million.

OrangeCountyhad10,600peopleworkinginthisindustryduring2008withestimatedrevenuestotaling$3.1

billion. The total economic impact was 22,700 jobs. State/local tax revenues generated directly and

indirectlybythesectorwere$74.7million.

Table15:EconomicImpactoftheFurnitureandHomeFurnishingsIndustry,2008


Payroll Nonemp. Jobs Output Taxes

Area Estab. Jobs ($billions) Estab. Forecast ($billions) Jobs ($millions)

LosAngelesCounty 1,872 35,600 $1.4 1,712 33,300 $23.7 77,800 $230.6

OrangeCounty 547 10,600 0.5 495 9,800 5.8 22,700 74.7

Total 2,419 46,200 $1.9 2,207 43,100 29.5 100,500 $305.3



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23

EEnntteerrttaaiinnmmeenntt

When people think of creativity and Los Angeles, this sector is often the focus of their thoughts. Several

activities are included here: sound recording (including records), motion picture and TV production, and

cablebroadcasting

(cable

firms

are

producing

more

of

their

own

content

these

days).

Musicians

might

be

includedhereforrecordingfilmscores,butmanyperformonthestageaswellasinthestudio;sowehave

alreadycountedthemasemployeesornonemployerfirmsinthefineandperformingartssector.

In Los Angeles County, there were 131,800 people working directly in the entertainment industry during

2008. Theestimateddirectsalesnumberswerehuge,$47.9billionin2008,ofwhich$37.7billioncamefrom

thefilmproductionindustry. Thetotaleconomicimpactwasalmost394,000directandindirectjobs(ahigh

multiplier) and estimated total output ofnearly $128billion. Stateand local taxes generated directlyand

indirectlyby thissector totaled$2.5billion in2008 (a reminderofwhyotherstatesare trying to lure film

productionaway).

TheentertainmentsectorinOrangeCountyissmaller,withjust1,800directjobsin2008andestimatedtotal

revenueof$2.9billion.Thetotaleconomic impactwasnearly4,800totaljobs. State/localtaxesgenerated

directlyand

indirectly

by

this

sector

totaled

$20.0

million

in

2008.

Table16:EconomicImpactoftheEntertainmentIndustry,2008


Payroll Nonemp. Jobs Output Taxes

Area Estab. Jobs ($billions) Estab. Forecast ($billions) Jobs ($billions)

LosAngelesCounty 5,488 131,800 $12.0 17,640 132,200 $127.8 393,700 $2.5

OrangeCounty 157 1,800 0.1 1,267 1,800 0.5 4,800 0.02

Total 5,645 133,600 $12.1 18,907 134,000 $128.3 398,500 $2.52



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24

Los Angeles County Creative EconomyService vs. Manufacturing Sector Employment

0

50

100

150

200

250

2003 2008 2013

Service Industries Manufacturing Industries

Employment, thousandsSource: California EDD, QCEW Data

WWhheerreeDDooWWeeGGooffrroommHHeerree?? TThheeCCrreeaattiivveeEEccoonnoommyyiinn22001133

Intheprecedingpagesofthisreport,wehavereviewedtheperformanceofthecreativeeconomyofLos

AngelesandOrangeCounty in2008, includingthe impactsofthecurrenteconomicdownturn. Inthis

section,wemakeapreliminaryprojectionof2013creative industryemployment levels inLosAngeles

and Orange County. We chose 2013 because it should be far removed from the current distressed

situation. Whatwillthecreativeeconomylooklikebythen?

Makingsuchaprojectionprovedsurprisinglydifficult. Theemploymentprojectionsfor2013musttake

intoaccountboththedepthofthedownturnin2009(andpossibly2010)andthespeedoftheupturn

expected in 2011 through 2013. As to the former, we recognize that2009 will compare unfavorably

with2008. Beyond2009,theoutlookforthenextfewyearsisquiteuncertain. Thebestcasewouldbe

severalyearsofsteadyeconomicgrowthandexpansiononcethelowpointhaspassedlaterin2009. A

morenegativeresultisalsopossible,however: afterafitfulupturninlate2009,theeconomyrelapses

againin2010andgrowsonlysluggishlythereafter.

As of this writing, the LAEDC economic forecast anticipates the economy will travel a path between

thesetwo

alternatives.

The

recession

hits

bottom

before

the

end

of

2009,

and

recovery

gets

underway

during2010. Theeconomy isgrowingnicelyby2011,andmoderategrowthcontinuesthrough2013.

Labor markets will take somewhat longer to turn around. The unemployment rate is expected to

increaseandemploymenttodeclineuntilspringorsummer2010. Bytheendof2010,bothshouldbe

movingintherightdirection(joblessnessdownwardandjobcountsupward)andshouldcontinuetodo

sothrough2013.

What does this economic outlook imply for the

areas creative industries? The LAEDC projects

that,giventhetrendsvisibletoday,totalcreative

industry employment in Los Angeles County will

be 334,400jobs during 2013, down by 2.3%, or

7,900

jobs,

from

2008

levels.

Note

that

total

creative employment in LA County declined

somewhat lessthanthisbetween2003and2008,

by 4,500jobsor 1.3%.

Why is total creative employment in the area

expected to decline when the economy will be

growing? Theansweristhemanufacturingsector,

whichisexpectedtolose 11,800creativeindustry

jobs by 2013, for a decline of 11.7% over the next five years. Fundamental trends in the creative

manufacturing sectorsespecially apparel and textiles, footwear, furniture, and toysare pushing

downfactoryproductionintheU.S.infavorofproductioninregionswithlowerlaborcosts,likeChina,

other

nations

of

Southeast

Asia

and

Latin

America.Excluding

manufacturing,

employment

in

L.A.s

creativeindustriesshouldgrowby+4,000jobs,or+1.6%by2013.


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25

Orange County Creative EconomyService vs. Manufacturing Sector Employment

0

5

10

15

20

25

30

2003 2008 2013

Service Industries Manufacturing Industries

Employment, thousandsSource: California EDD, QCEW Data

Totalcreative industryemployment inOrange

Countyduring2013willbe43,300jobs,down

by 2.6% or 1,200jobs, from 2008. This will

be a better performance than the previous

fiveyear

period,

when

total

creative

industry

employment fell by 4,800 jobs or 9.8%.

Again, the projected decline in total creative

industryemployment isexplainedby losses in

thecreativemanufacturingsectors. Excluding

manufacturing, employment in Orange

Countys creative industries is projected to

growby+900jobs,or+3.5%,by2013.

Table 17 on page 27 presents the 2013

projection for each sector of the creative

economy in Los Angeles County. The digital media sector is expected to grow the fastest between

2008and

2013,

with

employment

rising

by

at

least

+10%.

This

sectors

good

record

during

the

current

recession istheprimaryreasontoexpectahighrateofgrowth to2013. Morethanvideogamesare

involvedinthisprojection. Demand isquitestrongforalltypesofconsumerhandhelddevicesdespite

therecession,andinterestinnewapplicationsforthemisveryhigh.

Employment in two smaller creative sectors, industrial design and art galleries, is expected to post

growth in the 7% to 8% range between 2008 and 2013. In the industrial design sector, the LAEDC

believes there is always a healthy appetite for good design in all kinds of economic weather.

Employment in most designrelated creative industries is expected to increase. Art galleries also are

projectedtogrowinnumbersandstaffingasaresultoftheeconomicrecoveryandexpansion.

Moderately goodemploymentgrowth, in the5% to6%range, isprojected for thearchitecture and

interiordesignsectorandforfineandperformingarts. Employment inthefirsthasfallenduringthe

recession a casualty of the collapse in residential and commercial construction activity. However,

demandfordesignservicesisexpectedtogrowwhenconstructionactivityresumes.Amongthefineand

performing arts industries, employment is expected to grow rapidlyby 10% or moreamong

independentartists,writersandactors. Employment isalso likelyto increaseat theareaseducation

and training institutions. Stable employment, at best, is expected at nonprofit institutions like

museums,theateranddancecompaniesastheystruggletoovercomethefinancialchallengestheywill

befacingoverthenextfewyears.

Little ifanyemploymentgrowth isprojectedforthecommunicationartsandentertainmentsectors

overall. However,job counts will increase in certain segments of both sectors. The nogrowth

projection forcommunicationartsmasksadecline inemploymentatadvertisingagenciesthatwillbe

matchedbyjobgrowthinthegraphicdesignindustry.Graphicdesignersareemployedbyalargecross

sectionofindustries,someofwhichwillbegrowingoverthenextseveralyearsasothersdecline. Jobs

for graphic designers are projected to increase especially rapidly in computer systems design and in

management, scientific & technical consulting services. Among the entertainment related industries,

postproductionservicesactivity isseenasgrowingrapidly,whilejobcounts inthetraditionalsectors

remainstable.


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26

The three remaining sectors, all of which are heavily dependent on manufacturing activities, will

experience declines in employment over the coming years. The trend toward retaining localdesign

andqualitycontrolwhileoutsourcingproductionoverseasiswellentrenchedandwillcertainlycontinue

in thenext fiveyears. Thistrendhasbeenespeciallyvisible intheappareland textiles industry. Job

counts in the textiles, apparel, footwear, handbag andjewelry manufacturing are projected to fallby

11%to 15%. Wholesaleemploymentineachofthesesegmentswillremainflatordeclineslightly. The

one activity that will enjoy employment growth is other specialized design services. This groupincludes fashion designers and is expected to expand rapidly. The furniture and home furnishings

sectoralsowillcontinuetoloseworkersasproductioncontinuestoshiftoffshore. Textileproductmills

are expected to suffer the largest declines, but furniture and electric light manufacturers will shed

workersaswell. Thestoryismuchthesameforthetoyindustry,asmosttoysarenowdesignedlocally

andproducedinChina.

Employment projections for Orange County follow an arc similar to that of Los Angeles over the

forecast period. Table 18 on page 27 presents the 2013 projection for each sector of the creative

economy in OrangeCounty. The digital media sector is expected to exhibit the largest growth rate

between 2008 and 2013, rising by over 10% and adding +400jobs. Orange County is home to a

numberofdigitalmediafirmswithasignificantpresenceinvideogaming. Theeconomicdownturnhas

not impaired futuredevelopmentof thissector andmay evenhavehelped,as consumersshift toat

homeentertainmentoptionsinlieuofmorecostlyactivities.

Growingatamoderatebutstillhealthypace(between+6%and+8%)between2008and2013areart

galleries,product&industrialdesign,andarchitecture&interiordesign. Asisexpectedtobethecase

in Los Angeles County, a recovery in the economy and the labor market will enable consumers to

redirectagreatershareofdiscretionary incometotheartsandbusinessfirmsto increasedemandfor

welldesignedproducts. Improvinglabormarketswillalsogohandinhandwithrecoveryinthehousing

andconstructionindustries,thusincreasingthedemandforarchitectsandinterior/landscapedesigners.

Overallgrowthinthecommunicationartswillbeflat,butthisistheresultofdivergentresultswithin

thesectorgraphicdesignersareexpectedtoexpandtheirrankssignificantly. However,theeffect

willbe

offset

by

adecline

in

advertising

jobs.

Similarly,

the

fine

&

performing

arts

sector

will

see

little

gainoverall,thoughtheranksofindependentartists,writers,etc.,willincrease. Performingartsschools

anduniversitieswithfineartsprogramsshouldalsodowelloverthenextfiveyears. Entertainment,a

relativelysmallportionofthecreativeartsindustryinOrangeCounty,willremainflat.

ThetwolargestcreativesectorsinOrangeCountyintermsofemployment,fashionandfurniture,are

projected to contract between 2008 and 2013. The declines in textile and apparel manufacturing

parallelthedropoffseen inLosAngeles. Employment inthefurnitureandhomefurnishings industry

willalsofallacrosstheboard. Toymanufacturing,oneofthesmallestsectorsintheCounty,willlose

workersaswell.


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27

Table17: LosAngelesCountyEmploymentForecast2008 2013

CreativeIndustryNumberofJobs(000) 20082013Change

2008 2013 Number Percent

ArtGalleries 1.0 1.1 0.1 7.7%

CommunicationArts 18.0 18.0 0.0 0.0%

Architecture &InteriorDesign 12.6 13.4 0.8 6.1%

DigitalMedia 5.4 5.9 0.6 10.4%

Fashion 98.0 88.6 9.5 9.7%

Entertainment 131.8 132.2 0.5 0.4%

Fine&PerformingArtsProviders 33.2 35.3 2.1 6.2%

Furniture&HomeFurnishings 35.6 33.3 2.3 6.4%

Toys 6.0 5.8 0.1 2.2%

ProductDesign IndustrialDesign 0.7 0.8 0.1 7.7%

Total 342.3 334.4 7.9 2.3%

Source: California EDD LMID, ES202 Series; forecasts by LAEDC

Table18:OrangeCountyEmploymentForecast2008 2013

CreativeIndustryNumber

of

Jobs

(000) 2008

2013

Change

2008 2013 Number Percent

ArtGalleries 0.3 0.4 0.0 7.7%

CommunicationArts 3.9 4.0 0.0 0.2%

Architecture &InteriorDesign 6.2 6.6 0.4 6.2%

DigitalMedia 4.2 4.6 0.4 10.4%

Fashion 12.5 11.1 1.4 11.4%

Entertainment 1.8 1.8 0.0 0.0%

Fine&

Performing

Arts

Providers 3.7 3.9 0.1 3.8%

Furniture&HomeFurnishings 10.6 9.8 0.8 7.3%

Toys 0.7 0.7 0.0 0.9%

ProductDesign IndustrialDesign 0.5 0.6 1.1 7.7%

Total 44.5 43.3 1.2 2.6%

Source: California EDD LMID, ES202 Series; forecasts by LAEDC


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SSoommeeFFiinnaallTThhoouugghhttss

SomesegmentsofthecreativeeconomyofLosAngelesandOrangeCountyhavesignificantpotentialfor

furthergrowth. The decliningemployment trendsof thepast five yearsand thecoming half decade

reflectmanufacturingspecificissues,asfoundinapparel,furnitureandtoys. Between2003and2008,

employmentin

the

various

manufacturing

sectors

declined

by

21.5%

in

Los

Angeles

and

by

11.0%

in

Orange County because more production runsnow take place inAsia. Excluding themanufacturing

segments, employment in the serviceoriented creative industries of LosAngeles grew by +21,500

jobs,orby+9.9%,between2003and2008,andbyanestimated2%inOrangeCounty.

However,thecreativeindustriesdofacesomeissues. Theseinclude:

A lackof recognition in the regionofjusthow important theseactivitiesare. Akeydriverof theregions economy, the creative sector is a serious business generating good quality jobs and

significanttaxrevenuestreams.

One result of this attitude is that many of the creative industries are ignored by governmentagenciesinplanningandsupport.

Inparticular,theK12curriculumlackssufficientartsanddesignrelatededucation. Statereductionsinschooldistrictbudgetswillmakethisproblemworseinthenearterm.Thereisahugeironyhere

becauseatthecollegeanduniversity level,thecreativeeducationalassetsoftheLosAngelesarea

areunparalleled. Inaddition,graduatesofartsprogramscanmovetoandthrive inotherfieldsof

endeavor.

The regions creative talent pool, which is unique, is not fully used in the areas economicdevelopment efforts. Business and government leaders should consider how to partner with

collegesanduniversityprogramstopromoteinnovationandutilizetheregionscreativeassetsmore

effectively.

Resolvingalltheissueswillbetimeconsumingandrequireacollectivewillamongvarioussectors. But

theeffortswillbeworthwhile,ascreativityinLosAngelesalreadygeneratesahugenumberofjobsand

taxflowswithlittleornoencouragement.

With the data in this report, it is clear that the creative industries can be used to more effectively

brand Southern California. Already local media identify the region as the Creative Capital of the

World.Moreofusneedtodoso.


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29

StatisticalAppendix

Table19:EconomicImpactofCreativeIndustries,2008

Notes:


Detailsmightnotaddtototalsduetorounding.

Sources:CaliforniaEDD,ES202data;BureauoftheCensus;indirectimpactsestimatedbyLAEDC.

LosAngelesCounty Total(Direct+Indirect)Impact

Industry

No.of

Estab. Jobs

Payroll

($billions)

Nonemployer

Estab.

Output

($billions) Jobs

Taxes1

($millions)

Fashion 6,872 98,000 $3.6 6,653 $70.6 231,700 $661.4

Toys 258 6,000 0.6 390 9.5 16,300 100.8

DigitalMedia 176 5,400 0.5 6.3 16,000 71.7

Product/IndustrialDesign 131 700 0.04 0.2 1,100 5.4

Architecture/InteriorDesign 1,727 12,600 1.0 3,671 5.4 24,800 123.7

CommunicationArts 1,644 18,000 1.6 17,884 5.9 38,800 225.8

ArtGalleries 255 1,000 0.05 692 0.4 1,600 7.8

FineandPerformingArts 8,295 33,200 5.2 64,962 26.7 56,500 802.2

Furniture/HomeFurnishings

1,872

35,600

1.4

1,712

23.7

77,800

230.6

Entertainment 5,488 131,800 12.0 71,640 127.8 393,700 2,470.4

Total 26,718 342,300 $26.0 167,604 $276.6 858,300 $4,700.4

OrangeCounty Total(Direct+Indirect)Impact

No.of Payroll Nonemployer Output Taxes1

Industry Estab. Jobs ($billions) Estab. ($billions) Jobs ($millions)

Fashion 743 12,500 $0.6 1,355 $10.6 26,500 $88.0

Toys 47 700 0.05 122 1.3 1,600 6.8

Digital

Media

112

4,200

0.6

5.0

9,100

66.7

Product/IndustrialDesign 67 500 0.05 0.1 800 5.7

Architecture/InteriorDesign 796 6,200 0.5 1,247 3.8 12,100 59.4

CommunicationArts 579 3,900 0.3 5,764 1.1 7,900 34.7

ArtGalleries 71 300 0.01 225 0.1 510 1.3

FineandPerformingArts 405 3,700 0.1 8,170 1.2 6,400 20.1

Furniture/HomeFurnishings 547 10,600 0.5 495 5.8 22,700 74.7

Entertainment 157 1,800 0.1 1,267 5.2 4,800 20.0

Total 3,525 44,500 $2.8 18,645 $34.2 92,500 $383.2


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30

Table20: LocalUniversities,Colleges,TradeandTechnicalSchoolsOfferingDegreePrograms

intheCreativeIndustries,2008

LosAngelesCounty

ArtCenterCollegeofDesign LoyolaMarymountUniversity

CaliforniaInstitute

of

the

Arts

Schoolof

Film

&

Television

ColburnSchoolofMusic OccidentalCollege

FashionInstituteofDesign&Merchandising SchoolofArts

CaliforniaPolytechnicUniversity,Pomona OtisCollegeofArtandDesign

CollegeofEnvironmentalDesign PomonaCollege

Music,TheaterandDance Music

ApparelMerchandising&Management Theater&Dance

CaliforniaStateUniversity,LongBeach SouthernCaliforniaInstituteofArchitecture

CollegeoftheArts ScrippsCollege

CaliforniaStateUniversity,LosAngeles ArtArt Artconservation

Music

Dance

TheaterArts&Drams Music

CaliforniaStateUniversity,Northridge UniversityofCalifornia,LosAngeles

CollegeofArts,Media,Communication SchoolofArts&Architecture

ClaremontGraduateUniversity SchoolofTheater,Film,Television

SchoolofArts&Humanities UniversityofSouthernCalifornia

LosAngelesTradeTechnicalCollege SchoolofArchitecture(incl.GambleHouse)

Architecture&EnvironmentalDesign SchoolofCinematicArts

CabinetMaking&Millwork SchoolofFineArts

CulinaryArts SchoolofTheater

Fashion

Design

&

Merchandising

Thornton

School

of

Music

VisualCommunications&SignGraphics FisherGallery

OrangeCounty

CaliforniaStateUniversity,Fullerton

Theater

Music

VisualArts

ChapmanUniversity

CollegeofPerformingArts

DodgeCollegeofFilm&Media

UniversityofCalifornia,Irvine

ClaireTrevorSchooloftheArts


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31

NAICS

Creative Industry Code 2003 2008 Number Percent

Art Galleries 45392 1.0 1.0 0.0 3.5%

Communication Arts: 15.1 18.0 2.9 19.4%

Graphic Design 54143 4.9 5.4 0.5 10.1%

Advertising Agencies 54181 10.2 12.6 2.4 23.9%

Architecture and Interior Design: 9.4 12.6 3.2 34.0%

Architectural Sevices 54131 6.7 9.0 2.3 34.7%

Landscape Design 54132 1.0 1.1 0.1 12.5%

Interior Design 54141 1.7 2.4 0.7 43.8%

Digital Media: 5.3 5.4 0.0 0.4%

Software Publ ishers 5112 5.3 5.4 0.0 0.4%

Fashion: 110.1 98.0 -12.1 -11.0%

Textile Mills Manufacturing 313 10.3 9.1 -1.2 -11.5%

Apparel Manufacturing 315 67.8 55.1 -12.7 -18.8%

Apparel Wholesaling 4243 15.5 17.7 2.2 14.3%

Footwear Manufacturing 3162 0.9 0.7 -0.2 -25.7%

Footwear Wholesal ing 42434 2.8 3.0 0.2 5.5%

Women's Handbag Manufacturing 316992 0.1 0.0 -0.1 -96.6%Cosmetics Manufacturing 32562 4.4 4.9 0.5 12.3%

Jewelry Manufacturing 33991 3.1 1.7 -1.4 -46.6%

Jewelry Wholesaling 42394 4.4 4.3 -0.1 -3.3%

Other Specialized Design Svc 54149 0.8 1.6 0.8 104.6%

Entertainment: 119.9 131.8 11.9 9.9%

Sound Recording 5122 4.9 3.3 -1.6 -32.2%

Cable Broadcasting 5152 5.5 6.7 1.2 21.9%

Motion Picture/Video Production 51211 99.2 110.4 11.2 11.3%

Motion Picture Distribution 51212 1.9 2.2 0.3 13.3%

Post Production Services 51219 8.4 9.2 0.8 9.5%

Fine and Performing Arts Providers: 30.9 33.2 2.3 7.4%

Fine and Performing Arts Schools 61161 2.6 3.2 0.6 23.4%

Programs at colleges and universities* 6113 na 3.0Programs at technical and trade schools* 6115 na 0.7

Theater Companies 71111 1.4 2.2 0.8 59.3%

Dance Companies 71112 0.2 0.1 -0.1 -32.5%

Musical Groups 71113 4.1 3.3 -0.8 -19.9%

Other Performing Arts Cos. 71119 0.3 0.2 -0.1 -45.0%

Agents & Managers of Artists, etc. 71141 4.3 6.3 1.9 44.5%

Independent Artists, Writers, etc. 71151 14.0 10.1 -3.9 -27.9%

Museums 71211 3.5 3.8 0.3 7.9%

Musical Instrument Manufacturing 339992 0.5 0.4 -0.1 -28.7%

Furniture and Home Furnishings: 48.5 35.6 -12.9 -26.7%

Textile Product Mills 314 8.1 5.8 -2.3 -28.3%

Furniture Manufacturing 337 26.7 18.0 -8.7 -32.8%

Furniture Wholesaling 4232 9.5 8.7 -0.8 -8.0%

Electric Lighting Fixtures 33512 4.2 3.1 -1.1 -27.0%

Toys: 6.0 6.0 0.0 -0.4%

Toy Manufacturing 33993 2.4 2.2 -0.2 -7.8%

Toy Wholesaling 42392 3.6 3.8 0.2 4.4%

Product Design-Industrial Design 54142 0.5 0.7 0.2 41.4%

346.8 342.3 -4.5 -1.3%

2003-2008 ChangeAvg. Number of Jobs (000)

TOTAL

Table21:NumberofJobsintheCreativeIndustriesofLosAngelesCounty,2003vs.2008

*LAEDC'ssurveyofdegreeprogramsofferedbyfineandperformingartsschools/departmentincolleges/universities,

tradeandtechnicalschoolsinLosAngelesCounty.

Source: CaliforniaEmploymentDevelopmentDepartment,LaborMarketInformationDivision,ES202data.


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32

NAICS

Creative Industry Code 2003 2008 Number Percent

Art Galleries 45392 0.4 0.3 -0.1 -24.0%

Communication Arts: 7.2 3.9 -3.3 -45.3%

Graphic Design 54143 1.6 1.3 -0.3 -19.8%

Advertising Agencies 54181 5.6 2.6 -2.9 -52.8%

Architecture and Interior Design: 5.9 6.2 0.4 6.2%

Architectural Sevices 54131 3.5 4.1 0.6 16.3%

Landscape Design 54132 1.5 1.4 -0.1 -5.8%

Interior Design 54141 0.9 0.8 -0.1 -13.6%

Digital Media: 3.7 4.2 0.5 13.1%

Software Publishers 5112 3.7 4.2 0.5 13.1%

Fashion: 13.3 12.5 -0.8 -6.2%

Textile Mills Manufacturing 313 1.3 0.8 -0.5 -36.3%

Apparel Manufacturing 315 8.2 8.0 -0.2 -2.5%

Apparel Wholesaling 4243 1.9 2.0 0.1 4.6%

Footwear Wholesaling 42434 0.7 0.6 -0.1 -13.6%

Cosmetics Manufacturing 32562 0.3 0.3 0.0 3.5%

Jewelry Manufacturing 33991 0.3 0.2 -0.1 -35.3%

Jewelry Wholesaling 42394 0.4 0.3 -0.1 -18.4%

Other Specialized Design Svc 54149 0.3 0.3 0.0 -3.6%

Entertainment: 1.9 1.8 -0.1 -7.0%

Sound Recording 5122 0.2 0.1 -0.1 -36.4%

Cable Broadcasting 5152 1.2 1.0 -0.2 -14.4%

Motion Picture/Video Production 51211 0.6 0.7 0.1 17.7%

Fine and Performing Arts Providers: 3.5 3.7 0.2 6.2%

Fine and Performing Arts Schools 61161 0.8 0.8 0.1 9.3%

Programs at colleges and universities* 6113 0.2

Theater Companies 71111 0.9 0.8 -0.1 -15.5%

Musical Groups 71113 0.2 0.3 0.1 41.6%Other Performing Arts Companies 71119 0.2 0.1 -0.1 -49.6%

Agents & Managers of Artists, etc. 71141 0.1 0.1 0.0 -34.0%

Independent Artists, Writers, etc. 71151 0.7 0.8 0.1 15.5%

Museums 71211 0.3 0.4 0.1 15.4%

Musical Instrument Manufacturing 339992 0.2 0.2 0.0 -1.4%

Furniture and Home Furnishings: 12.4 10.6 -1.8 -14.8%

Textile Product Mills 314 2.8 2.1 -0.7 -24.2%

Furniture Manufacturing 337 6.9 5.2 -1.6 -23.5%

Furniture Wholesaling 4232 1.9 1.6 -0.3 -13.7%

Electric Lighting Fixtures 33512 0.9 1.6 0.7 77.9%

Toys: 0.6 0.7 0.0 6.7%

Toy Manufacturing 33993 0.1 0.1 0.0 -14.9%

Toy Wholesaling 42392 0.5 0.6 0.1 11.7%Product Design-Industrial Design 54142 0.3 0.5 0.2 80.8%

TOTAL 49.3 44.5 -4.8 -9.8%

2003-2008 ChangeAvg. Number of Jobs (000)

Table22:NumberofJobsintheCreativeIndustriesofOrangeCounty,2003vs.2008

*LAEDC'ssurveyofdegreeprogramsofferedbyfineandperformingartsschools/departmentincolleges/universities,

tradeandtechnicalschoolsinLosAngelesCounty.

Source: CaliforniaEmploymentDevelopmentDepartment,LaborMarketInformationDivision,ES202data.


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KathleenA.Milnes

PresidentandCEO

TheEntertainmentEconomyInstitute

AdjunctAssistantProfessorDigitalMedia

OtisCollegeofArtandDesign

October1,2009


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WelcometoanyFriday. YouturnontheTVnewsinthemorning.Theresareportaboutthelatestastronauts

joiningthespacestationcrewthat includesasimulationofthedockingmaneuverviewedfromoutsidethe

aircraft. You head out for a doctors appointment because you are scheduled for an artificial heart valve

replacement.YourdoctorplaysaDVDshowinghowthenewvalvewillbeinsertedandhowitwillfunction.

Onthewayhome,youstopatyourkitchendesignstoretoseeavirtualflythroughofyournewkitchen. You

decideyouprefercherrycabinetstowhiteandthedesignerchangesitbeforeyoureyes. Finally,youcome

homeandpulloutyourWiiremoteforaquicktennismatchwithyourteenagerbeforeheadingouttosee

thelatest

science

fiction

movie.

Whatdoalltheseexperienceshaveincommon?Manyoftheimagesyouareseeingwerecreatedbyworkers

that the U. S. Bureau of Labor Statistics calls MultiMedia Artists and Animators. This relatively new

occupational classification (added in the late 1990s) covers 3D animators, video game designers, special

effectswizards,characteranimators,andotherspecialties.

Animation once involved scores of workers who painstakingly dr

creative economy 2009 report

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